Income taxes

12 Months Ended

Dec. 31, 2020

15.	Income taxes

(a)	Provision for income taxes

The major components of provision for income taxes are as follows:

	2020		2019
Current tax expense		—		—
Deferred tax expense		—		—
Provision for income taxes		—		—

The reconciliation of the provision for income taxes to the amount of income taxes calculated using statutory income tax rates applicable to the Company in Canada is as follows:

	2020			2019
Canadian federal and provincial recovery of income taxes using statutory rate of 27% (2019 – 27%,)		(3,630	)		(2,653	)
Change in unrecognized deductible temporary differences and unused tax losses		3,093			4,534
Permanent differences and other		537			(1,881	)
Provision for income taxes		—			—

(b)	Deferred tax assets

As at December 31, the Company’s deferred tax assets are as follows:

		2020				2019
Unused tax losses			222				37

(c)	Deferred tax liabilities

As at December 31, the Company’s deferred tax liabilities are as follows:

	2020		2019
Convertible debentures		—		—
Deferred cost		222		37
		222		37

(d)	Deductible temporary differences and unused tax losses

Deferred tax assets have not been recognized because it is not probable that future taxable profit will be available against which the Company can use the benefits therefrom.

15.	Income taxes (Continued from previous page)

As at December 31, the Company has deductible temporary differences for which no deferred tax assets are recognized as follows:

	2020		2019
Property and equipment		2,946		2,103
Right-of-use assets, net lease liability		438		388
Intangible assets		10,346		3,205
Debentures		433		595
Convertible debentures		1,679		530
Financing costs		1,496		1,509
Research and development expenditures		1,437		1,437
Other		2,245		—
		21,020		9,767

In addition to the deductible temporary differences listed above, as at December 31, the Company has unused tax losses for which no deferred tax assets are recognized as follows:

	2020		2019
Expires 2024		610		610
Expires 2025		936		1,101
Expires 2026		2,112		2,136
Expires 2027		4,863		5,203
Expires 2028		2,064		2,064
Expires 2029		4,237		4,679
Expires 2030		3,698		3,698
Expires 2031		1,470		1,614
Expires 2032		3,772		4,854
Expires 2033		6,065		11,006
Expires 2034		7,416		8,420
Expires 2035		9,680		11,168
Expires 2036		18,713		18,886
Expires 2037		20,450		20,449
Expires 2038		20,214		20,214
Expires 2039		24,977		14,557
Expires 2040		169		—
		131,446		130,659